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Edible oil companies operating in the Egyptian market raised product prices this month by 18.5%.
The retail price of a one-liter bottle reached EGP77, compared with EGP65 last month, according to company price lists reviewed by Al Shorouk.
At the same time, bulk soybean oil prices in the local market continued to rise for the second consecutive month, reaching EGP66,000 per tonne, compared with EGP62,000 at the end of last month, according to several traders.
Two traders told Al Shorouk that the local price increase was linked to pricing practices by some major companies, which moved to raise prices sharply once global prices increased, despite the presence of strategic stocks sufficient for more than seven months.
Bulk edible oil prices in local markets have risen by 37.5% over the past two months, from EGP48,000 per tonne in September to EGP66,000 per tonne this week.
Globally, a sharp increase in vegetable oil prices, driven by production concerns, pushed the FAO Food Price Index to its highest level in 18 months in October.
According to FAO, the vegetable oil price index rose by 7.3% in October to its highest level in two years because of higher palm, soybean, sunflower, and rapeseed oil prices.
Ahmed El-Menoufy, an adviser at the chambers of commerce and one of the organizers of government exhibitions in Qalyubia, said coordinated pricing among major companies in oils and food products generally contributes to continued price increases.
He said two of the largest oil companies in the local market, Arma and Savola, raised their prices at the same time and by the same amount, with one-liter bottles priced at EGP77.
He noted that global oil prices had indeed risen, but shipments priced at the new global levels had not yet been imported, while Egypt still had a strategic edible oil reserve sufficient for more than seven months.
Islam Metwally, owner of an edible oil factory in Sharqia, said major brands had faced weak sales since March because of the large price gap between their products and those of smaller companies.
He said smaller packing companies had sold one-liter oil bottles at around EGP50 in the second quarter, while major brands exceeded EGP80.
Metwally expected bulk edible oil prices to rise to EGP70,000 per tonne in the coming days, citing higher global prices and expected demand growth ahead of Ramadan.
Egypt depends on imports for around 97% of its annual edible oil needs, according to previous data from the oils division at the Federation of Egyptian Industries.
Source: Al Shorouk